The Theme last week was a preview for InsurTech in 2019.
The Theme this week, is about cars and auto insurance. The auto industry is in the process of revolution with the emergence of connected cars and sharing economy. Sometime it concerns insurance, sometime it doesn’t. But I think insurers should always pay attention.
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Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.
Story 1: Data Derived From Connected Cars Raise Concerns
Extract, read more on Claims Journal:
“Automakers are collecting valuable pieces of information thanks to the internet connections, cameras and sensors built into most vehicles in recent years. The online access makes it possible for cars to be unlocked remotely if the keys are lost. It’s how safety features can be upgraded wirelessly and maintenance schedules adjusted based on performance.”
The article mentioned that government in China has been collecting data from connected car. There have been reports in Chinese media as well, but it did not cause much stir. I have to say in China, people are blunt for privacy, sometimes they are even willing to trade privacy for conveniency.
Story 2: Insurers see value in digital vintage car-sharing
Extract, read more on Digital Insurance:
“Vintage cars are alluring. They represent the simplicity, or craftsmanship, or louche sleaziness of a bygone era. They are also—and I say this as the proud owner of four old vehicles—fussy, dangerous, and excruciatingly unreliable. Not everyone enjoys this kind of constant crapshoot in their daily drive.
Fortunately, a trio of “sharing economy” apps allow occasional access to well-maintained classics. DriveShare, Turo Inc., and Vinty Inc. all function like Airbnb, but each has a unique position. Owners list their vehicles, upload information and images, set a rental price, and provide guidelines on things such as mileage, security deposit, and delivery instructions.”
Out of three of them, DriveShare and Turo Inc. are both backed by national insurance company, Hagerty for DriveShare and Liberty Mutual for Turo. Vintage car sharing is a small market, but insurance can be vital for its healthy growth.
Story 3: Auto marketplace CarDekho grabs $110M to double down on insurance and financial services
Extract, read more on TechCrunch:
“CarDekho, an online marketplace for car sales in India, has pulled in a new $110 million Series C funding round from a clutch of existing investors to push deeper into financial services and insurance.
Sequoia India, Hillhouse and Alphabet’s CapitalG led the round, which also saw participation from Axis Bank, one of CarDekho’s financing partners.”
Service platform is a good place to nurture insurance habits. Since the platform can save the trouble of seeking potential customers, what insurer should do is to attract users with good policies.
Today’s post brought three different stories around cars and insurance. These intersections between insurance and another industry can breed a fair number of opportunities, and along with some problems as well.
Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.
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